Australian Dollar (AUD) Edges Higher amid Risk Appetite Return
The Australian Dollar (AUD) ended last week’s trade on a sour note, unable to recover the losses sparked by the Reserve Bank of Australia’s (RBA) dovish pivot earlier in the week.
A downbeat market mood kept the risk-sensitive ‘Aussie’ on the defensive. Contagion worries about the financial instability of Silicon Valley Bank rattled global markets.
With no data releases today, AUD is likely to be affected by any shifts in risk appetite.
New Zealand Dollar (NZD) Bolstered by Rising Commodities Prices
The New Zealand Dollar (NZD) found some success against its weaker peers on Friday as climbing commodities prices supported the resource-linked ‘Kiwi’.
However, a risk-off market mood capped NZD’s gains.
Looking to today, a softer PMI reading for the country’s services sector could dent NZD.
Pound (GBP) Climbs as UK Economy Expands by More-Than-Expected
Better-than-expected GDP figures pushed the Pound (GBP) higher at the close of last week. The UK’s economy expanded by 0.3% in January versus forecast growth of 0.1%.
Analysts stated that the unexpectedly positive growth could help the UK avoid a recession in the first half of 2023.
A lack of data for Sterling today means the currency could be affected by Bank of England (BoE) rate hike bets and recession predictions.
Euro (EUR) Falls amid ECB Policymaker Split
The Euro (EUR) slipped over the course of Friday as evidence of a split between European Central Bank (ECB) policymakers prompted losses in EUR.
However, the common currency was able to rally against some of its peers as the session went on thanks to its negative trading relationship with a falling US Dollar (USD).
A lack of data for the Euro today will likely see the single currency affected by ECB rate hike signals and risk appetite.
US Dollar (USD) Slumps after Mixed Jobs Data
The US Dollar tumbled at the end of last week after the release of the latest US employment data, despite February’s non-farm payrolls printing above forecast.
An unexpected rise in February’s unemployment rate and below-forecast wage growth sparked speculation of a cooling labour market. This sentiment pulled USD lower.
Looking ahead, the US Dollar will see no data today. The safe-haven ‘Greenback’ could therefore be affected by Federal Reserve rate hike bets and changes in risk appetite.
Canadian Dollar (CAD) Slides despite Oil Price Rise
The commodity-linked Canadian Dollar (CAD) failed to find support from rising oil prices on Friday as the ‘Loonie’ suffered from its positive correlation with the tumbling US Dollar.
The Canadian Dollar will see no data releases today. The ‘Loonie’ could be affected by any shifts in crude oil prices.
Mar 13th 07:30 NZD Services NZ PSI (Feb) 54